Global Market Overview: Sentiment Improves Amid Fed Speculations and Chinese Stimulus

DAILY MARKET NEWSLETTER

September 5, 2023

Discover today's directional views curated by the international research teams at Everything Trading! These insights serve as your launchpad for conducting research to pinpoint opportunities that align with your strategies. If you find value in these insights, don't hesitate to share them with a friend!

Stocks and Indices:

• U.S. markets were closed on Monday due to Labor Day.

• Global market sentiment improved with expectations of a potential pause in U.S. Federal Reserve rate hikes and anticipated stimulus measures in China.

• Hong Kong's Hang Seng Index increased by 2.51% to reach 18,844.

• Japan's Nikkei 225 Index climbed by 0.70% to reach 32,939, marking a six-session rally.

• European stocks, however, closed slightly lower: DAX 40 declined by 0.10%, CAC 40 fell by 0.24%, and FTSE 100 was down by 0.16%.

Commodities:

• U.S. WTI crude futures increased by $0.40 to $85.95 per barrel.

• Gold price added $2, reaching $1,942 per ounce.

Forex:

• The U.S. dollar index retreated to 104.12.

• EUR/USD rose by 13 pips to 1.0793.

• GBP/USD gained 39 pips, reaching 1.2629.

• USD/JPY climbed by 27 pips to 146.49.

• AUD/USD dipped by 4 pips, landing at 0.6460. Australia's central bank is expected to keep its key rate unchanged at 4.10% later today.

• USD/CHF declined by 4 pips, reaching 0.8847.

• USD/CAD edged up by 2 pips higher, reaching 1.3594.

Cryptocurrency:

• Bitcoin lacked upward momentum and pulled back to $25,880.

“Intraday Forex and Dow Jones Analysis: September 4th, 2023”

EUR/USD Analysis:

• Pivot:1.0770

• Preference:Long positions above 1.0770 with targets at 1.0810 & 1.0830 in extension.

• Alternative scenario:Below 1.0770, look for further downside with 1.0750 & 1.0730 as targets.

• Comment:Limited consolidation expected.

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GBP/USD Analysis:

• Pivot:1.2600

• Preference:Long positions above 1.2600 with targets at 1.2645 & 1.2670 in extension.

• Alternative scenario:Below 1.2600, look for further downside with 1.2575 & 1.2550 as targets.

• Comment:Limited consolidation anticipated.

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USD/JPY Analysis:

• Pivot:146.30

• Preference:Long positions above 146.30 with targets at 146.90 & 147.10 in extension.

• Alternative scenario:Below 146.30, look for further downside with 146.00 & 145.80 as targets.

• Comment:RSI signals further advance.

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Dow Jones (CME)‎ (U3)‎ Analysis:

• Pivot:34900.00

• Preference:Short positions below 34900.00 with targets at 34760.00 & 34670.00 in extension.

• Alternative scenario:Above 34900.00, look for further upside with 34980.00 & 35085.00 as targets.

• Comment:RSI suggests downside momentum.

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